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Binance Co-Founder Changpeng Zhao Speaks on Recent ByBit $1.4 Billion Hacks
In a recent tweet post, Binance Co-Founder Changpeng Zhao (CZ) has sounded the alarm about the alarming rise in crypto hacks, specifically highlighting the recent Bybit $1.4 billion breach issue. CZ warns that hackers have been able to steal large amounts of crypto from multi-signature “cold storage” wallets, and urges the crypto community to take note.
The Binance co-founder points out a concerning pattern in these hacks, stating that hackers have managed to manipulate the front-end interface, making it appear as if a legitimate transaction was taking place. However, the actual transaction being signed was entirely different. This raises serious questions about the vulnerabilities in multi-signature security systems.
What’s more disturbing is that hacked exchanges used different security providers, indicating that these breaches were not isolated incidents but rather a systemic issue. CZ suggests that hacker group Lazarus may be behind these attacks, showcasing their expertise.
In response to these security breaches, CZ proposes that crypto exchanges consider pausing withdrawals immediately after an attack. He believes that before resuming operations, exchanges need to investigate thoroughly how the hackers gained access, which systems were compromised, and whether security has been completely restored.
CZ draws parallels with a 2019 Binance hack, where withdrawals were paused for a week, resulting in little panic among users but leading to more deposits than withdrawals when reopened. He emphasizes that security should never be taken lightly and urges the crypto community to stay informed and choose safe platforms.
Furthermore, CZ praised Bybit’s CEO, Ben Zhou, for staying calm and being transparent during the crisis, contrasting this with other exchanges like FTX and WazirX, where a lack of openness led to bigger problems.
Source: coinpedia.org
